Elon Musk: Demand for Tesla’s new battery packs is ‘crazy off the hook’

Tesla’s recently introduced battery packs, for both home and utility use, are already proving to be tremendous successes. If you recall, Tesla last week introduced a Powerwall battery pack (available in 7kWh and 10kWh configurations) for home owners alongside a Powerpack battery designed for corporate use and utility companies.

During Tesla’s earnings conference call this week, CEO Elon Musk said that the response to Tesla’s new batteries has been overwhelming and “crazy off the hook.” Impressively, the Powerwall has already yielded 38,000 reservations while the industrial-oriented Powerpack has netted 2,500 reservations.

But because each reservation typically involves multiple battery packs, the actual number of batteries ordered is actually much, much higher.

Musk explained:

The Powerpack, it should be noted, typically this is bought by utilities or large industrial companies for heavy industrial work. So, typically it’s like at least 10 Powerpacks per installation. So if there’s 2,500 reservations, it’s actually 25,000 Powerpacks.

Not surprisingly, the Tesla Powerwall is already sold out through mid-2016. And with Musk stating that margins on Tesla’s new battery packs are likely to fall in the 20% range, Tesla’s newest endeavor may very well prove to be a cash cow.